PZ Cussons Nigeria profit rebounds to N5.54bn in 2025, reversing last year’s N76bn loss. Revenue hits N212bn amid lower forex losses and strong efficiency
PZ Cussons Nigeria profit has surged back into the green, with the consumer goods giant posting a profit after tax of N5.54 billion for the financial year ending May 31, 2025.
Also read: Wilmar takes over palm oil production in Nigeria from PZ Cussons in $70m deal
This remarkable turnaround comes after it reported a massive N76.02 billion loss during the same period last year.
In unaudited results submitted to the Nigerian Exchange Limited on Monday, the company revealed a robust 40 per cent increase in revenue, which rose from N152.25 billion in 2024 to N212.63 billion this year.
The company’s gross profit also saw a slight improvement, climbing to N57.70 billion from last year’s N54.13 billion.
Perhaps the most impressive figure is the reversal in operating performance. PZ Cussons reported an operating profit of N17.31 billion, compared to an operating loss of N127.43 billion the previous year.
Similarly, profit before tax jumped from a staggering loss of N108.10 billion to a positive figure of N16.86 billion.
According to the company, the dramatic improvement in the profit is primarily due to a sharp reduction in foreign exchange losses and enhanced operational efficiency.
The firm’s forex-related losses dropped significantly to N7.78 billion, a vast improvement from the N157.92 billion loss in 2024.
Tax expenses also fell, with the company reporting N11.32 billion in taxes paid, compared to N32.17 billion a year ago.
As a result, profit attributable to equity holders soared to N5.64 billion, a massive swing from a previous loss of N68.41 billion.
Earnings per share also turned positive at N1.00, up from a loss of N19.00 per share.
This performance demonstrates the effectiveness of our strategy in navigating currency challenges and maintaining operational focus.
Despite a rise in cost of sales—up from N98.1 billion to N154.9 billion—the company still managed to post a strong gross profit, highlighting its ability to manage margins under increased input costs.
Interest income increased modestly from N1.11 billion to N1.33 billion, while interest expenses dropped to N3.59 billion from previous levels, resulting in a net interest cost of N2.26 billion.
Commenting on the results, a company spokesperson noted that the figures reflect a return to sustainable business practices.
“This performance demonstrates the effectiveness of our strategy in navigating currency challenges and maintaining operational focus,” the person said.
In a strategic move, PZ Cussons Nigeria has also agreed to sell its 50 per cent stake in PZ Wilmar Limited to Wilmar International Limited for $70 million.
The transaction marks its exit from the Nigerian palm oil joint venture launched in 2010.
Industry analysts see this divestment as a repositioning effort that allows the company to streamline its operations and focus on its core strengths in fast-moving consumer goods.
The PZ Cussons Nigeria profit announcement is likely to boost investor confidence and market sentiment, especially after a challenging year marked by currency devaluation and macroeconomic instability.
The sharp cut in forex losses indicates prudent financial management and a more favourable currency environment.
The company’s performance is viewed as a benchmark for resilience in Nigeria’s manufacturing sector, which has been under pressure from inflation and foreign exchange volatility.
Looking ahead, PZ Cussons says it remains focused on cost control, product innovation, and expanding its market footprint.
Also read: PZ Cussons considers exiting Africa amid declining sales in Nigeria
The management has expressed optimism about continued growth, supported by improved economic fundamentals and internal restructuring.
Source: Read more at thesun.ng
